Appreciation Definition: Appreciation occurs when the value of an asset increases over time. This increase in value, also known as capital appreciation, usually applies to investments such as bonds, stocks, real estate, and other monetary or physical items, which generally become worth more than their original price over time.
Due to appreciation, an asset that becomes worth more as an investment in the future is often seen as having a future benefit.
When an item or asset loses value over time, this is referred to as depreciation, the opposite of appreciation. Investments are generally viewed as assets that appreciate or increase in worth over a span of time.
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